NASDAQ Composite (.IXIC) earnings upbeat, more due this week
US stocks rose on Friday after Washington said it was close to finalising parts of a trade pact with Beijing, while strong quarterly results from Intel boosted investor sentiment, sending the S&P 500 briefly over a record high.
During the session, the benchmark index peaked at 3,027.39 points, which surpassed its closing record of 3,025.86 on July 26. It ended at 3,022.55.
US stocks rose early after the US Trade Representative’s office said deputy-level talks would continue. President Donald Trump said China wanted “to make a deal very badly.”
Wall Street enjoyed a strong week, boosted by a clutch of better-than-expected third-quarter earnings reports. The S&P 500 posted its biggest weekly percentage gain in seven weeks, the Nasdaq its biggest in eight weeks.
“The little bit of positive trade news has pushed the market up, but it wasn’t all that negative even before this news came up,” said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management in New York.
“There’s not a lot of selling left out there.”
Intel’s quarterly report added to Friday’s upbeat sentiment. The chipmaker’s shares jumped 8.1 per cent, their biggest gain since January 2018, after the company beat Wall Street revenue and profit estimates and raised its full-year revenue forecast.
The gain in Intel helped propel the Philadelphia SE Semiconductor index to a record high.
Amazon.com fell after the e-commerce giant forecast revenue and profit for the crucial holiday quarter below estimates. Amazon shares ended 1.1 per cent lower, well off their session low.
“The market reaction to Amazon wasn’t as bad as people thought, which created a positive atmosphere,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
The Dow Jones Industrial Average rose 152.53 points, or 0.57 per cent, to 26,958.06, the S&P 500 gained 12.26 points, or 0.41 per cent, to 3,022.55 and the Nasdaq Composite added 57.32 points, or 0.7 per cent, to 8,243.12.
For the week, the S&P 500 rose 1.2 per cent, the Dow gained 0.7 per cent and the Nasdaq climbed 1.9 per cent.
Boeing shares dropped 1.4 per cent after Indonesian authorities looking into October 2018’s Lion Air crash said the world’s largest planemaker failed to grasp risks in the design of cockpit software on its 737 MAX jet.
Shares of VF Corp fell 7.3 per cent after the apparel maker reported lower-than-expected quarterly revenue as competition intensified for its Vans and Timberland brands.
The next round of earnings due next week includes Apple, Alphabet, Pfizer and Merck & Co.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 8,491.82.
The projected lower bound is: 8,013.48.
The projected closing price is: 8,252.65.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.7491. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.68. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 101 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 111.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 57.323 at 8,243.119. Volume was 13% below average (neutral) and Bollinger Bands were 1% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,138.39 8,029.25 7,827.40
Volatility: 13 19 19
Volume: 469,479,360 519,386,816 555,358,464
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
NASDAQ COMPOSITE is currently 5.3% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .IXIC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 6 periods.
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